Online casino, Bodog, has just been penalized for its use of payment processors within the United States following the passing of the UIGEA, which sparked a two year investigation and probe into the casino. A sum of $24 million was seized from its various payment processors, despite that all player funds were returned quickly and smoothly once the ban came into effect.
According to the Chief Executive Officer of Mohawk Gaming Group, Alwyn Morris, all players were paid eventually and all the transactions were made safely. He explained that outsourcing payment processing functions to third parties is a common aspect of the online casino industry, and that the only reason they have been so heavily reprimanded is the unstable legal environment for online casino gambling in the US.
The agent of the probe, however, submitted an affidavit in favor of the seizure of the casino payment funds, claiming that Bodog had been sending payments to money processing entities that were based in the United States in order to continue to make payouts to its customers. He explicated that these processors were operating under a series if various business names, among them EGALO, dba ZipPayments.com, Direct Channel LLC and ZAFTIG Instantly Processed Payments Crop. The agent made all such discoveries after going undercover as a player at Bodog and gambling over $3500 over the two year period, of which he claimed back $1500 from the Mercantile Bank, which bounced and Bodog had to replace with a new cheque.
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